Bill > HB5392

This bill amends Michigan's employment security law to modify how the unemployment insurance agency (UIA) recovers improperly paid benefits. The bill establishes clearer guidelines for when and how the UIA can seek restitution from claimants, including setting a 3-year time limit for most recovery actions. It introduces a more comprehensive waiver process for claimants who cannot reasonably repay overpaid benefits, allowing individuals 60 days to provide evidence of waiver eligibility. The bill specifies three primary scenarios for waiving repayment: when incorrect wage information was provided without intent to misrepresent, when the claimant's household income is at or below 150% of federal poverty guidelines, or when the overpayment resulted from an administrative error. For cases involving intentional fraud, the bill maintains stricter penalties, including canceling the claimant's benefits for the current benefit year and potentially preventing the use of wages from that year to establish future claims. The legislation also requires the UIA to provide an annual report to legislative committees detailing waiver application statistics, and mandates that determinations of intentional false statements cannot be based solely on computer-identified discrepancies but must involve independent human review.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5392